There’s no doubt that both fast-casual and fine dining restaurants across the United States have struggled to stay afloat during COVID-19. If you’ve thought about selling during this time, you’re not alone. Your restaurant may offer the best, most authentic Indian cuisine in the state, but without proper planning and marketing, you’ll have little luck selling your business. To help you successfully sell an Indian restaurant, Sunbelt Business Brokers has created a list of must-ask questions before listing your business for sale.
Ask yourself these six questions to make sure your Indian restaurant listing is second to “naan.”
An exit strategy from the restaurant is something that you should consider from day one. A detailed exit strategy answers all of the following questions so that you can ensure a seamless transition to a new owner.
Consider what you will include in the sale of your restaurant. In an asset sale, you sell assets– both tangible and intangible– to the buyer. These assets could consist of everything from the real estate and kitchen equipment to the business’s goodwill and trademarks—the more assets included in the sale, the more attractive your listing usually is.
Next, take a critical look at your restaurant, evaluating its strengths, weaknesses, opportunities, and threats. Be sure to address any weaknesses and threats that may scare away potential restaurant buyers and begin taking advantage of opportunities.
If you’re having a hard time critiquing your business, start evaluating your competitors. Look at what other South Asian restaurants and eateries in your area are doing to excel. Things that might help you set your restaurant apart from others include:
These are just a few suggestions to get your mind jogging. Talk with other restaurant owners in your network or your employees to gather more ideas.
Work with your attorney, accountant, and manager to begin collecting essential documents and financials that potential buyers will want to see before signing on the dotted line. These documents might include:
To select a reasonable yet profitable asking price, you’ll need to determine what your established Indian restaurant is worth. There are many ways to assess value, but it’s typically recommended that restaurateurs hire a third-party valuation company or business broker to value the restaurant. Often, business owners have difficulty fairly assessing what their business is worth due to emotional attachment. As a result, valuations are inflated and not truly reflective of what the restaurant is worth. By working with a valuation firm or business broker, you can have a valuation that withstands scrutiny from potential buyers and set a competitive asking price.
Finally, it’s time to find a potential buyer for your Indian cuisine restaurant. Some of the most common buyers for restaurants are family members and employees, but they may also be buyers looking for turnkey restaurant opportunities with existing cash flow. The tricky part is identifying and qualifying these buyers while keeping the sale of your restaurant confidential.
The best way to find a buyer for your Indian food restaurant is by working with a business broker. Business brokers have access to an enormous network of qualified buyers interested in opportunities in your area. In addition, they have the resources to market your restaurant and get the listing in front of the right people.
Once interest is generated in your restaurant, a business broker can coordinate meetings with potential buyers, help with negotiations, write counteroffers, and manage contracts. With a professional handling the details of your sale, you can focus on what’s most important— your restaurant’s day-to-day operations.
To learn more about working with a business broker to sell an Indian restaurant, contact Sunbelt Business Brokers today. We have decades of experience helping owner-operators like you list businesses for sale and close deals for top dollar.